The U.S. House of Representatives passed the budget reconciliation bill, also known as the “Big Beautiful Bill,” on July 3. This bill includes significant cuts to Medicaid, SNAP, and federal student loan programs, raising concerns about the disproportionate impact on LGBTQ Americans who rely heavily on these safety net programs.
According to research from the Williams Institute at UCLA School of Law, approximately 1.8 million LGBTQ adults depend on Medicaid as their primary health insurance, which is nearly twice the rate of non-LGBTQ adults as a percent of the population. The new legislation reduces federal Medicaid spending and requires beneficiaries to work or attend school for 80 hours monthly to maintain coverage.
LGBTQ adults face particular vulnerability under these changes. The data shows 26% of LGBTQ Medicaid recipients live with low incomes, 19% are raising children, and 18% have disabilities. Among those affected are 2 million lesbian and bisexual women, 1 million LGBTQ adults with disabilities, and 185,000 transgender adults.
The bill also shifts SNAP food assistance costs to states while tightening eligibility requirements. Nearly 2.1 million LGBTQ adults currently rely on SNAP benefits, with 69% of LGBTQ recipients having household incomes under $35,000.
Student loan changes cap federal loans for graduate students and parent PLUS loans. More than one-third of LGBTQ adults aged 18-40 hold federal student loans totaling over $93.2 billion.
“These changes to federal programs will have a significant impact on LGBTQ people, especially vulnerable subpopulations such as lesbian and bisexual women, transgender individuals, and those living with disabilities,” said Brad Sears, Distinguished Senior Scholar of Public Policy at the Williams Institute, highlighting concerns about increased poverty and food insecurity among LGBTQ communities.
